Is the VIX Being Gamed? A Sudden Swoon Has Traders Talking Again
- The volatility gauge took a quick tumble on morning of Dec. 20
- Futures tied to the gauge settled right around that time
'VIX Elephant' Hedges Against Increase in Volatility
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It made for quite a chart.
On the morning of Dec. 20, just as billions of dollars of futures tied to the Cboe Volatility Index were set to expire, the index plunged. The result was a settlement price, a weekly value critical to holders of some the most heavily traded derivatives in the country, that was 13 percent below the prior day’s close. A nice break, if you were short.